Netacea secures GBP £4 million to combat bot attacks

Netacea has secured an additional GBP £4 million investment to intensify efforts in combating bot attacks.

The Manchester-based cybersecurity firm, known for its work in protecting against online fraud via bot deterrence, has received funding from Mercia Asset Management. The investment, which utilises Mercia's own funds and the Northern Powerhouse Investment Fund (NPIF), aims to advance Netacea's artificial intelligence development, expand its product offerings, and support the company's continued growth.

Bot attacks account for a significant portion of online fraud, with recent developments in "offensive AI" making these attacks more sophisticated and challenging to counter. Netacea's platform, equipped with AI-driven capabilities, not only identifies and mitigates active threats that other cybersecurity tools might overlook but also provides warnings of potential future attacks.

Among Netacea's technologies is the BLADE framework, an open-source solution that charts the entire lifecycle of an attack. This covers everything from initial planning to the eventual sale of compromised goods or data. The framework is gaining traction as a standard model among business security teams, as Netacea continues to create products to manage all facets of the attack lifecycle.

Founded in 2022, Netacea emerged as a spin-out from Intechnica Holdings, an IT consulting entity supported by Mercia and the NPIF. After Intechnica was acquired by Crosslake Technologies in the United States, Mercia and NPIF retained their investment interests in Netacea.

The company currently employs around 60 individuals and boasts a clientele that includes several of the world's major online retailers and prominent brands. Netacea reported a 29% revenue increase for the fiscal year concluding in March 2024, with expectations for its continued expansion.

Mick Bradley, Chief Executive Officer of Netacea, stated, "The cost of online fraud is rising at an alarming rate and with the growth of e-commerce and adoption of offensive AI, is estimated to reach $7.95 trillion by 2027. Solving this problem is not only about stopping attacks but also understanding the intent, planning and execution. Netacea's industry-leading threat intelligence, along with our AI-driven intent-based analytics tools, enables us to identify and stop significantly more bot attacks than traditional methods. This latest funding will enable us to accelerate product development and further extend our AI."

Angela Warner from Mercia expressed, "Netacea has become a thought leader in its field and Mercia is pleased to have been able to play a key role in its success, and that of Intechnica from which it arose. This investment will enable it to continue its growth. It also reinforces Mercia's position as a leading cyber security investor.

"Our portfolio companies are addressing critical challenges across the security spectrum - from bot detection and threat intelligence to digital forensics and supply chain risk management. The sustained interest we are seeing in this sector validates our early conviction in these technologies, and we continue to actively evaluate opportunities in this space."

The Northern Powerhouse Investment Fund II, introduced by the British Business Bank earlier this year, promotes economic advancement by funding small and medium businesses in Northern England, offering loans from GBP £25,000 to GBP £2 million, and equity investments up to GBP £5 million.

The NPIFII's objective is to foster sustainable economic growth by facilitating innovation and creating new opportunities for emerging firms in the region. It aims to increase the diversity and accessibility of early-stage finance, supporting businesses that might otherwise struggle to obtain funding and bridging disparities in financial access.